Cox Insurance signs £138m deal with CGI

Cox Insurance signs £138m deal with CGI

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Outsourcing

Cox Insurance Holdings has signed a 10-year, £138m IT outsourcing deal with CGI Group.

Under the terms of the deal, CGI will take over management of Cox's entire IT infrastructure, including desktops, support and maintenance of applications, as well as IT development and integration for the company's entire business, said Gavin Chapman, senior vice-president and European managing director at CGI.

As part of the agreement, more than 200 Cox IT employees will transfer to CGI.

CGI said it will provide Cox with more efficient, cost-effective services through the use of its facilities in the UK and offshore facilities in Canada and India.

Cox chief executive Neil Utley said the outsourcing move will allow the insurance company to accelerate work on a backlog of IT projects, save money and provide its IT employees with more career opportunities.

Cox has outsourced its back-office administration systems to CGI for the past 20 years. According to Utley, outsourcing the company's IT services will cut the costs of business processes, improve service levels and flexibility, and provide the company with the advantage of having a single point of contact for all IT-related issues. 

Linda Rosencrance writes for Computerworld

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